05 Mar Supergraphic

The Marketing Technology Supergraphic published by and designed by Scott Brinker, is a collection of over 3,500 logos showcasing companies across the marketing technology landscape. Scott Brinker, a blogger of new marketing technologies, condensed and categorized the firms in their respective function and uses. It certainly is impressive and we can find major players presented in multiple sections as they compete in several sectors. Salesforce, the CRM SaaS giant is depicted six times, by my count, under categories such as Sales Automation and Collaboration. Two points become clear when contrasting the 2011 Supergraphic which only showcased 150 logos compared to 3,500 in 2016.

First, the majority of new companies are Software as a Service (SaaS) and its online subscription revenue model has seen a tremendous boom. The SaaS revenue model is proving to be a viable business model with tremendous growth and value. Secondly, the trend cannot continue and will eventually experience a crowding out and reconsolidation of the space. New firms are slicing the vertical ever finer the ease of integrating with other software is a must-have-feature. An index of the top SaaS companies published by BVP, shows that the growth is well above the Nasdaq which raises some questions about overvaluation and realignment.

Where is the new frontier in SaaS and what does this mean for new ventures entering the space? The emergence and multitude of new companies are mostly owning the vertical space and becoming more specialized. The new frontier is the so called, “tech stack,” the combining of platforms and uses into a single product. This will consolidate growth and add value. Educating consumers on the value of tech stack should provide new challenges to young companies looking to enter the increasingly crowded space.  Successful tech stacks will commoditize core features such as storage and CRM and reshape the market.